Li Auto is expected to start delivering the Li M6 BEV in March 2025, with a delivery target of 200,000 units in the first year of launch, according to local media.
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It looks like Tesla's (NASDAQ: TSLA) hot-selling Model Y crossover is going to have a new strong rival in China.
Li Auto (NASDAQ: LI) is set to launch an all-electric SUV, the Li M6, internally codenamed W04, with deliveries expected to start in March 2025, local automotive media Meiren Auto said today, citing several people familiar with the matter.
The Li M6 will be an all-electric 5-seat SUV that will compete with models including the Tesla Model Y, Aito M5, and Xpeng (NYSE: XPEV) G6, according to the report.
Li Auto's main sellers are the Li L7, Li L8, and Li L9, three extended-range electric vehicles (EREVs). The company launched the Li Mega MPV (Multi-Purpose Vehicle) on March 1, its first battery electric vehicle (BEV) model.
Li Auto will launch the Li L6 EREV in the second quarter and three all-electric SUVs in the second half of this year, the company's management said in a February 26 analyst call following fourth-quarter 2023 earnings results.
The Li L6 will target a price range of RMB 200,000 ($27,780) to RMB 300,000, the company previously said.
Li Auto will launch corresponding BEVs in reference to the L-series EREVs, and the three BEVs to be launched in the second half of the year will likely be the Li M7, Li M8, and Li M9, according to Meiren Auto.
The Li M6, on the other hand, will be the corresponding BEV version of the Li L6, according to the report.
Li Auto is accelerating the expansion of its product lineup to achieve higher sales targets, the report noted.
Li Auto is confident of sales of the Li M6, with a delivery target of 200,000 units in the first year of launch, the report said, citing people familiar with the matter.
The company said earlier this year that it aims to challenge annual sales of 800,000 units in 2024 and monthly sales of up to 100,000 units.
Li Auto mentioned in February 2021 that it aims to become China's No. 1 smart EV company by 2025 with a 20 percent market share, or 1.6 million annual sales.
On June 21, 2023, Li Xiang, the company's founder, chairman, and CEO, reiterated that goal on Weibo, stating that Li Auto aims to reach annual sales of 1.6 million vehicles by 2025, with annual revenues of RMB 500 billion.
Li Auto delivered 376,030 vehicles in 2023, a year-on-year increase of 182.21 percent, achieving its 300,000-vehicle target. Its revenue for the full year of 2023 was RMB 123.85 billion.
With the L-series and M-series products in place, Li Auto will strengthen its capabilities in the BEV segment to capture a larger market share, Meiren Auto said.
However, the company will remain focused on the SUV segment and has no intention of entering the sedan market, the report said.
The Li M6 is expected to be yet another competitor to the Model Y, a Tesla SUV that is one of the best-selling models in China.
Li Auto's local counterpart Nio (NYSE: NIO) will launch a new brand codenamed Alps this year, and will introduce the brand's first model, which will also compete with the Model Y.
The Alps brand will debut in the second quarter, with the first model launching in the third quarter and volume deliveries beginning in the fourth quarter, Nio management said in a March 5 analyst call following the announcement of its fourth-quarter 2023 earnings.
New spy shots of what is suspected to be Alp's first model were revealed on March 5, with a few words on the vehicle's rear window meaning it's better than Tesla's Model Y.
Nio founder, chairman and CEO William Li said in a user communication in Ningbo, Zhejiang province, on March 2 that those who want to buy Model Y recently can wait for a while, and Alps' first model will definitely be cheaper than it.
($1 = RMB 7.1986)
New spy shots of Nio Alps model revealed, aims to beat Tesla Model Y
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